1. IT for Decision Makers
e Commerce Overview
By Taholo Kami
for UNESCO
2. What is e Commerce?
e commerce is enabling or achieving
your business objectives by using
information technology to enhance
or transform your business
processes.
Kami, 2000
3. e commerce
Business to business (B2B)
automating supply
increasing business efficiency
Car manufacturing ordering tires from
supplier
Business to Consumer (B2C)
Retail Sales ,Ordering books online
Customer Support
Consumer to Consumer (C2C)
Online Auctions of second hand articles,
antique pieces
4. eCommerce
ecommerce is more then just an
online shop selling goods….
Businesses make huge savings by
more efficient interaction with their
suppliers or buyers.
A local pharmacist orders 60% of his supplies
from an overseas pharmaceutical suppliers
website and saves 5% in his purchases - is this
ecommerce?
A remote Fiji resort attracts guests from the
USA after several exchanges of email. Is this
ecommerce?
5. Global
400 million users of Internet worldwide
1999 US online retail sales - US$20bn.
Forrester Research
2000 US online retail sales - US$30bn+
Forrester Research
2004 US Online retail sales US$6.9
trillion. Forrester Research
electronic payment of bills and banking
will cost US Postal Service $17bn over
10 years.
6. Interpretation ?
Consumers are willing to spend money on
online transactions.
Despite the recent dot.com drop in
investment - consumers continue to use
the Internet in growing numbers.
The US figures are only part of the global
picture.
7. What is working?
Travel / Tourism
Retail - items that don’t need personal touch -
objectivity in product quality and performance
music, books, gifts, Computers, electronic
items
Auctions
Real Estate - houses and investment properties.
Customer support services
More efficient and effective processes between
businesses (B 2 B)
8. What is not working?
Items which require “touch and trial”
Luxury goods
Clothes
Groceries - it works for some people
but market is restricted
Note: Many OFF line factors determine
success of Online service.
Eg. Transport network, customer profiles,
9. Demonstrations - Tourism
Tourism:
www.tongaonline.com/sailingsafaris
Sailing Safaris - Tonga
One boat operation in 1996 from small island
base
Competing with 2 multinational yacht
companies with global marketing network
Since 1997 - 80% of business from web site.
This statistic 60-80% of bookings from web
inquiries is common to Tourism operators in
the Pacific.
10. Objectives?
Why get online?
Promote awareness of your Organization
Sell a product
Customer support
Information and contact page
Networking
Everyone else has a web page
11. Plan
What is your product?
Electronic, Services or physical
Portable and inexpensive to deliver
Tourism
Who is your market?
Overseas buyers
Upper income art collectors
Budget travellers / Up market
Obstacles, Implementation and
deadlines.
12. Getting Online
Hosting Your Website
Fast Access
Cost, Support, Space and Services
Choosing a Domain Name (web address)
www.myname.com / .nu / .to / .tv / .fj /
Calling Card
Choose name that relates to product
Reflects on organization
Easy to remember
13. Design Issues
Often Simple Is Better
E.g. National PNG, Yahoo
Complexity depends on your website
objectives
Planning content
How do you keep content fresh and relevant
Who Develops your website?
Professional Services
Do it Yourself
14. Web Site Software
Web-site Creation
Common Software Tools.
Image Editing
Adobe Photoshop
Jasc.com
Web Page Development
Paint shop Microsoft Front page - $150
Dream Weaver - $150 – 200
Netscape Communicator-Free
Note: There are a lot of cheaper software online.
15. Managing your Web Site
Managing your website can take TIME!
Adapting Business processes
Customer expectations
Limitations of the medium (non face to face)
16. Transactions
1. Getting paid online is very difficult in some countries.
Many banks will need a large deposit or a strong
relationship to allow a SME to open a merchant /
credit card processing account at a bank.
Alternatives include:
Bank transfer
Credit Cards
Merchant account
Manual / Automated processing
Third party processing
paypal.com
17. Delivery
Delivering an artifact after online purchase or
attracting visitors to an eco tourism resort -
managing expectations is essential
People are used to guaranteed delivery but
more importantly, communicate reality so
expectations are realistic.
E.g. Implement a 2 week guarantee for
goods
Ensure online advertisement meets
expectations
Use a reliable delivery service (TNT, FedEx)
18. Marketing Web site
How do people find your website?
ONLINE Strategy
Links from related and / or popular web sites
Search Engines
Online Advertisements
Informed by other users
19. Marketing Your Website
OFFLINE Strategy - Show Your URL
www.MYCOMPANY.com
Stationary
Advertising on conventional media
Trade shows
20. Making a contract
What terms do you want to include?
What risks are you trying to avoid?
How will disputes about contract be dealt
with?
What is the governing law?
Who will sign it?
21. Conclusion
Despite infrastructure limitations, the target
market in developed countries are likely to be
Internet users.
If unsure, start small. An existing website helps
develop your capacity to interact with
customers and measure web potential.
Lobby Government for effective IT Strategy
that develops infrastructure and builds local
capacity.